We present a general company-wide management information system for defining procurement strategies. We believe
that existing practices for determining purchasing strategies can be improved and a new approach developed. The
system uses total cost of ownership information. We argue that mathematical programming models should be used for
exploiting this information, when evaluating the firm's strategic procurement options. As an example, we show how we
have successfully applied our approach to develop a decision support system at Usinor, a European multinational steel
company. 在高速磨削中冷却液速度的分析与实验研究
Journal of the Operational Research Society (2005) 56, 51-59. doi: 10. 1057/palgrave.jors.2601832
Published online 4 August 2004 Introduction
In today's business world characterized by intense global
competition, cost management is an important strategic
weapon. External purchases of products and services
account generally for more than 60% of the total costs for
most companies. Consequently, significant cost savings can
be realized by effectively determining procurement strategies.
For many years, however, procurement has been an
undervalued activity in terms of its contribution to corporate
performance improvement and value for money manage-
ment. Inadequate planning, poor communication between
departments involved in the procurement of materials and
equipment and weak performance measurement are typically
problems related to existing procurement practices.
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purchasing literature and in practice we have
noticed the existence and use of simple, subjective and
incomplete approaches for supplier selection (for a detailed
overview see Degraeve et al'). The most common ap-
proaches for supplier selection focus on vendor rating using
weighted point plans or more advanced ranking methods
based on the analytical hierarchy process2 or data envelop-
ment
analysis.3 These approaches allow decision makers to
establish an order of preference between suppliers on
multiple performance criteria. However, in the presence of
many goods to be purchased, defining purchasing strategies
that describe which vendors to use, what to buy from them 2434
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